We propose Serum DAO port to Aptos

Serum DAO’s Port to Aptos

We propose that the Serum deploy on Aptos as well. Aptos is a new layer one, the continuation of Facebook’s Diem project built by a strong ex Facebook core team with fundraising lead by Jump & FTX. Aptos has similar performance guarantees as Solana promising greater reliability, making it a serious contender to Solana. We propose that Serum port over to Aptos retaining the same name, governance token, and similar tokenomics.

We refer to the Aptos Serum Orderbook as Project Swordfish.

Serum on Solana successfully incentivizes deep liquidity because the right parties are incentivized to participate, namely major market makers. Serum token holders should be Serum maxis first and act in the best interest of the Serum DAO. It is in the best interest for Serum to expand for the following reasons:

  1. Growth: Aptos is privately valued 2-6 billion privately with Jump and FTX jointly leading their funding round. It shows signs of Solana-level transaction speed with potentially better reliability. Should this vision be realized, this represents a large market that could significantly increase the Serum token price

  2. Hedge: Should another orderbook become the leading provider on Aptos, they will cut into Serum’s volume. Should Aptos succeed in supplanting Solana, the Aptos based competitor will be the leading order book of DeFi, destroying Serum value. We can prevent this risk by expanding to make Aptos growth beneficial rather than parasitic to Serum

  3. Utility: Projects built on Swordfish will use Serum token natively increasing Serum token’s utility and use case, bolstering its price.

  4. Optionality: Should Aptos fail to realize its potential, the Serum community can redouble focus on Solana growth. We believe this proposal has a low upfront fixed costs but a high potential upside, making it the correct path forward.

The below grant and tokenomics are our suggestions. We would like the community to suggest alternatives.

Grant

We suggest that Swordfish be granted 3 million USD worth of SRM tokens, 50% percentage of this should be used for liquidity mining, and 50% percentage of which should be used as seed funding for the development team.

Tokenomics

Swordfish would retain Serum’s existing tokenomics with one modification; we propose that 20% of Swordfish Orderbook fees be retained by the Swordfish DAO in order to fund liquidity mining operations and ecosystem growth.

Swordfish will have no other outside investors, we believe this fee structure makes sense to deliver a quality product and preserve Serum’s reputation.

Execution

Should the above vote be passed, we propose that the Serum team coordinate with us in carrying out the port. We are experienced blockchain developers who would like to be considered to lead the port.

As Swordfish is meant to be for the benefit of the Serum community, we encourage members interested in contributing to reach out.

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I am strongly against supporting such mercenary capital/developers on a non-existent blockchain, just my opinion though.

2 Likes

Agree, a very odd governance proposal

I support Serum adding Aptos to its arsenal, but there should be no convoluted DAOenomics bs. Serum has internal resources, let them be used to make Serum the place of liquidity for every chain it is on.

Serum has devs, and there are huge aligned teams inside alameda, jump and elsewhere, who can all make this happen.

Why not a cosmos ibc chain? Why not an L2?

IMO the product roadmap should drafted & proposed by the core team, not through random individual DAO votes

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Agree, existing Serum tokenomics should change as little as possible or not at all for the port.

Eth L2s do not match Solana’s TPS and would be a poor choice for a port IMO.

Cosmos IBC looks to be an interesting expansion, DyDx & Sei are working on orderbook as an app chain.

However moving to an app-chain is a big change since you need to build an L1 (essentially building a Solana equivalent). The tokenomics change drastically since the SRM token would have to be the L1 token as well, which is too drastic a change IMO.

The most valid alternative is Sui, which shows superiority to Aptos from a pure tech perspective though it currently has limited DeFi activity (testnet not out yet).

If Serum DAO were to expand, Sui or Aptos is the most natural expansion since they’re very similar to Solana and the tokenomics wouldn’t change.

I believe this port is one of the best possible uses of DAO money, liquidity mining does less to increase SRM token price, whereas a Sui / Aptos expansion would probably increase the SRM token price in the short and long term.

Would love to see the core team’s thoughts here.

That was more of a rhetorical question.

Serum on Solana still has a long way to go, any expansion is a distraction & a drag on attention and resources.

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In the time of posting

  1. Serum LPs have pulled a hundred million of liquidity
  2. Jump & FTX have lead fundraising on Aptos & Sui

We believe there is a high likelihood this liquidity will be deployed on Aptos & Sui and believe the port is a way recapture this.

Linking the discussion in the discord here: Discord